Telefónica and Microsoft to Deploy New Global Video Platform

Telefónica’s new global convergent video platform, based on the Microsoft Mediaroom product suite, will power its pay TV and OTT services across its Operating Businesses, with first deployments in Brazil, Chile and Spain.

MADRID, Spain, and REDMOND, Wash. — Telefónica Digital and Microsoft Corp. today announced a multiyear strategic agreement to create a new Global Video Platform (GVP) for all video entertainment services across Telefónica’s Operating Businesses. Based on key Microsoft technologies including the Microsoft Mediaroom platform, the GVP is unique in delivering TV services over both managed (IPTV) and nonmanaged (“over the top”) networks, at global scale, to a range of consumer devices. The first GVP deployments are taking place in Brazil, Chile and Spain, and Telefónica anticipates extending the deployment of TV services based on the GVP to a number of its other Operating Businesses over the next few years.

“Video is a fast-growing market, and we already play a leading role in delivering Pay TV services to customers in Europe and Latin America. This new platform allows us to reflect the deep and rapid changes happening in this market. It offers the ease and convenience of a global, convergent platform while maintaining flexibility over content for our local businesses. Most important, it allows us to meet customer demands for access to video content on an ever-expanding range of devices,” said Vivek Dev, director of Digital Services, Telefónica Digital.

The GVP, and its use of Mediaroom, will enable Telefónica to deliver to consumers high-performance, differentiated and feature-rich TV services over both its managed high-speed broadband networks as well as “over-the-top” nonmanaged broadband networks. It provides a range of advanced features to TV subscribers, including time-shifting and multiscreen among others, enabling Telefónica to take advantage of its multidevice capabilities.

“Telefónica is a close partner to Microsoft, and the Global Video Platform, based on the Microsoft Mediaroom platform, will enable them to grow their business and reach new audiences,” said Tom Gibbons, corporate vice president, Operator TV Business, Microsoft. “This new agreement focused on Telefónica’s GVP further extends our alliance in the world of TV and video entertainment to a range of screens throughout the home and on the go, and the benefits will be enjoyed by many millions of people globally. Through its use of IP-based broadband networks and the Microsoft Mediaroom platform, Telefónica’s next-generation TV services are poised to delight and entertain millions of consumers across their markets in Europe and Latin America.”

These services can be enjoyed by consumers on a range of devices inside and outside the home, including set-top boxes, Xbox 360, tablets and smartphones. Because the Mediaroom platform includes key technologies such as Microsoft PlayReady, Internet Information Services Smooth Streaming and Microsoft Silverlight, the delivery of TV services across these various networks and to multiple screen types can all be done via one common technology infrastructure. This is expected to result in significant efficiencies for Telefónica in time to market, cost of delivery and overall scale.

Earlier this month, Telefónica launched its premium Internet Protocol television (IPTV) service in Brazil, which follows a similar launch in Chile in October. Both services, Vivo TV Fibra in Brazil and Movistar IPTV in Chile, are the first IPTV deployments that take advantage of the new GVP platform and its capabilities, offering an exceptional user experience for their Fiber to the Home customers. In November 2011, Telefónica and Microsoft launched the first service enabled by the GVP: Movistar Imagenio on Xbox 360. It provides subscribers with 12 linear channels focused on sports, including the Spanish First Soccer League (Liga BBVA) under Canal+ Liga Channel.

During the past 14 months, the Microsoft Mediaroom platform has continued to scale its deployments and services, surpassing 11 million consumer households and 22 million set-top boxes across the Americas, EMEA and APAC, further securing its position as the world’s most deployed IPTV platform.*

About Telefónica

Telefónica one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. From this outstanding position in the industry, and with its mobile, fixed and broadband businesses as the key drivers of its growth, Telefónica has focused its strategy on becoming a leading company in the digital world.

The company has a significant presence in 25 countries and a customer base that amounts close to 314 million accesses around the world. Telefónica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.

Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4.551.024.586 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, New York, Lima, and Buenos Aires.

About Telefónica Digital

Telefónica Digital is a global business division of Telefónica. Its mission is to seize the opportunities within the digital world and deliver new growth for Telefónica through research & development, venture capital, global partnerships and digital services such as cloud computing, mobile advertising, M2M and eHealth. It is also driving innovation in over the top communications under a new umbrella brand called TU and in Big Data through Telefónica Dynamic Insights. Telefónica Digital will deliver these new products and services to Telefónica’s 314 million customers as well as entering new markets. It is headquartered in London with regional centres in Silicon Valley, Sao Paulo, Spain and Tel Aviv. Jajah, TokBox, Terra, Media Networks Latin America, 48 and giffgaff are all managed under the Telefónica Digital umbrella.

The award-winning Microsoft Mediaroom Internet Protocol Television (IPTV) and multimedia software platform is the most widely deployed IPTV platform in the world. Mediaroom is driving the future of television by enabling broadband service providers to deliver new connected TV and entertainment experiences to consumers worldwide. It provides new ways for consumers to experience TV as part of their connected, digital lifestyle, while also creating new business opportunities for broadband service providers, hardware manufacturers, content creators, advertisers and application developers. Over 40 of the world’s leading service providers across four continents have selected the Mediaroom platform to drive their digital TV services. More information on Mediaroom and the opportunity to deliver the best in TV plus all your media in one place is available at http://www.microsoft.com/mediaroom.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

* This is an increase from previously reported 8 million consumer households and 16 million set-top boxes.

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